Anti-origin fraud: Many high-risk businesses continue to be closely controlled

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Customs officers of Binh Duong Customs Department inspect imported rice cookers infringing origin. Photo: T.D

Contribute VND77 billion to the State budget

At the online conference summarizing performance in 2020 and implementing the tasks for 2021 held by the General Department of Vietnam Customs (GDVC) on December 24, one of the outstanding achievements that was highly appreciated by Deputy Minister of Finance Vu Thi Mai was the work on anti-origin fraud and illicit transshipment.

Following the direction of the Government and the Ministry of Finance, the GDVC has implemented specialized measures and discovered many tricks of origin fraud, labeling and infringement of intellectual property rights, illicit transshipment of import and export goods.

In 2020, the Customs sector has inspected more than 100 suspicious enterprises and detected 43 origin violations of exported goods. At the same time, it has coordinated with the Ministry of Public Security to investigate a case showing signs of making fake origin certificates.

From the inspection results, the Customs has seized 3,590 CBU bikes, more than 4,000 sets of bicycle parts and more than 12,000 sets of accessories to assemble kitchen cabinetsas evidence of violation. In addition, the Customs has collected and paid more than VND77 billion to the State budget.

In particular, Customs has discovered a company making fake origin certificates for enterprises to use to export goods. This company has made 392 C/O for 33 enterprises in many different provinces across the country to export goods abroad (with Vietnamese origin of goods), the total export value of these 33 enterprises is estimated at more than VND600 billion. The GDVC has asked the investigating agency of the Ministry of Public Security to coordinate and receive case files for investigation and prosecution.

In addition, the GDVC advised the Ministry of Finance to propose ministries and sectors to amend and supplement regulations on origin and labeling.Specifically,the Ministry of Science and Technology should soon revise Decree No.43/2017/ND-CP on goods labeling; the Ministry of Industry and Trade should urgently considerto amend and supplementlegal normative documents on goods origin (Decree No.31/2018/ND-CP, DecreeNo. 185/2013/ND-CP) and soon issue the Circular specifying origin criteria for goods traded domestically.

Specifically, Customs’ results in the fight against origin fraud and illicit transshipment have contributed to the strong prevention of origin fraud.

The recent achievements also demonstrate the seriousness and determination of the Government, the Ministry of Finance, and the GDVC in the fight against origin fraud by importing enterprises that abuse tax incentives between Vietnam and countries such as the US and EU and change awareness of enterprises, especially FDI enterprises that must make substantive investment to ensure that products manufactured in Vietnam have enough content to be treated as Vietnamese goods, and to operate in Vietnam for long time.

Expand international cooperation

At the online conference summarizing performance in 2020 and implementing the tasks for 2021, Director General of GDVC Nguyen Van Can emphasized that one of the keys tasks of the Customs sector in 2021 is to continue to strengthen the fight against origin fraud.

Deputy Minister of Finance Vu Thi Mai suggested the GDVC to continue to promote achievements and experience in 2020, at the same time it is necessary to strengthen coordination with US Customs and other countriesin information exchange and close coordinationin the fight against origin fraud.

The representative of the Post-Customs Clearance Audit Department­– the leading department in the fight against origin fraud – said the department has completed phase 3 of the plan on combat origin fraud and made the plan to become a major direction in post-customs clearance audit in 2021.

Besides exporting goods to the major market as the US, the Customs will expand the inspection for exported goods into the EU and countries that have signed preferential tariff agreements with Vietnam.

Specially,it will focus on inspecting enterprises that have the risk criteria such as enterprises with large export turnover to the US, EU, and India.

Inspecting enterprises that import raw materials from China, and then export goods declared as Vietnamese to the US, EU, India and subject to items with tax rate differences when these goods are exported from Vietnam compared to goodsexported from China.

Inspecting enterprises that have a sudden increase in export turnover to the US, EU and India markets (about 20% or more) in 2019 compared to 2018; enterprises have high export frequency, the export time between shipments is inconsistent with the time of products; enterprises established before the US-China trade war but have a sudden increase in turnover since the trade war took place; as well as high-tech goods exporters in Vietnam.

In addition, the Customs has focused on inspecting exported goodswith complex production cycles, and time-consuming and costly production.